Bass Warns “When The Globe Is At 360% Credit Market Debt-To-GDP, There Is No Real Way Out… And Investors Should Be Really Careful Doing What The Central Bankers Want Them To Do.”

Quantitative easing is nothing but “competitive devaluation,” Kyle Bass begins this brief but wide-ranging interview; and while no central bank can explicitly expose the ‘beggar thy neighbor’ policy, they are well aware (and ‘banking on’) the fact that secondary or tertiary effects will lead to devaluing their currency. The bottom line, Bass warns, is “when the globe is at 360% credit market debt-to-GDP, there is no real way out.” Furthermore, the winds of austerity have already blown (simply put no nation engaged in austerity prospectively – for the nation’s betterment – they were forced by the bond markets) and with central bankers now dominant - the Krugman-esque mentality of “let’s just keep going,” is very much in the driver’s seat since politicians now see “no consequence for fiscal profligacy.” The average investor, Bass adds, “is at the mercy of the central bank puppeteers,” as the Fed’s policies are forcing mom-and-pop to “put their money in the wrong place at the wrong time.” There will be consequences for that… there is only one way this will end… “and investors should be really careful doing what the central bankers want them to do.”

Forward to 38:31 for Kyle Bass’ interview…

 
http://www.zerohedge.com/news/2013-08-04/kyle-bass-warns-there-no-real-way-out
Investment pros John Mauldin, Mohamed El-Erian, David Rosenberg, Barry Ritholtz, John Hussman and Kyle Bass discuss these important investor questions:
1) Is the Market’s Run Sustainable?
2) Where Do You Find Safe Income?
3) The Euro Crisis. DC Dysfunction. Central Bankers Printing Trillions. What Does It Mean for Your Portfolio NOW?
http://www.youtube.com/watch?v=jzkYeSfgZQI

Kyle Bass, the hedge fund manager who made billions betting against mortgage-backed securities in 2008, now says to bet against The Fed and all central banks. He says average investor is being forced to put money in wrong place at wrong time. Watch the full interview at http://inn.MauldinEconomics.com.